Start-Stop Technology Demand To Rise Substantially in Future

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Puneet Shah
Noida Sector 2
UP 201301 

The start–stop technology market is expected to demonstrate a CAGR of 18.8% during the forecast period (2016–2022). At this rate, the revenue of the market will increase from $2,100.2 million in 2015 to $7,058.0 million by 2022, due to the growing requirement for fuel-efficient vehicles and hybrid vehicles. Moreover, the market is witnessing the trend of the adoption of clean energy throughout the world. The start–stop technology cuts down the time the engine spends idling, by automatically shutting down and restarting it, which reduces fuel consumption and greenhouse gas (GHG) emissions.

Thus, the most important factors driving the start–stop technology market growth are the rising requirement for fuel-efficient vehicles and stringent emission norms. The Organization of the Petroleum Exporting Countries (OPEC) has imposed new norms on its member nations and put a limit on the production and export of crude oil. Due to the reduced import of this commodity, emerging economies, such as Brazil, China, and India, are deploying the start–stop technology in vehicles to improve their fuel efficiency and reduce the need to purchase crude oil and its derivatives.

Besides, the start–stop technology market growth is propelled by the large scale production of vehicles integrated with this technology in North America. The Environmental Protection Agency (EPA) of the U.S. has introduced stringent norms to limit the emission from passenger cars to 143 grams per mile (g/mil)by 2025. Additionally, the agency has set the permissible combined fuel economy of cars and trucks to 54.5 miles per gallon (mpg) by 2025. Similar government regulations in Europe have increased the deployment of start–stop systems by automobile manufacturers.

The product segment of the start–stop technology market is categorized into belt-driven alternator starter (BAS), enhanced starter, integrated starter generator (ISG), and direct starter. Among these, the enhanced starter category held the largest market share in 2015; the ISG category is projected to register the highest growth rate during the forecast period. Enhanced starter and ISG start–stop systems are expected to be widely deployed in passenger cars due to their lower cost and higher fuel efficiency in comparison to the direct start and BAS technologies.

The start–stop technology market has a consolidated nature due to the presence of few players. Some of the players operating in the market include Robert Bosch GmbH, Denso Corporation, Johnson Controls Inc., Mitsubishi Electric Corporation, BorgWarner Inc., Delphi Automotive PLC, Hitachi, Ltd., and Valeo SA, most of whom cater to the demand from across the world. Globally, the European region generated the highest demand for start–stop systems, with the U.K. emerging as the largest user in the continent. As for the Asia-Pacific (APAC) region, China dominated the market, whereas the U.S. generates the higher revenue in the North American market.

Thus, the expanding automobile sector and growing concerns regarding environmental pollution are expected to lead to an increase in the market size during the forecast period. The surging focus of governments and international agencies on clean energy has further augmented the demand for start–stop-technology-integrated automobiles.